A San Francisco Scaleup Has Cut Engineering Costs by 40%—Here’s How

Scaling a business is no easy task, especially for tech companies facing the dual pressures of managing costs and maintaining high performance.

A recent Stanford University study has revealed compelling evidence that shows how strategic staff augmentation, particularly in Poland, can be a game-changer for US scaleups.

This research, grounded in real-world data, offers actionable insights that can help companies make informed decisions about expanding their teams internationally.

The Case Study: Reorganizing for Success

The study analyzed the performance of a 90-person engineering team that underwent a significant reorganization.

The company replaced 42 Bay Area engineers—each with an average salary of over $200,000—with 41 engineers in Poland, where the average salary is $80,000, and 5 engineers in India, earning an average of $35,000. This strategic shift resulted in a dramatic reduction in their annual engineering costs from $12.3 million to $7.4 million—a 40% savings.

Performance Parity with Lower Costs

Cost savings are essential, but performance must not be sacrificed.

The Stanford study found that within six months, the new, cost-effective team nearly matched the original Bay Area team’s performance.

The evaluation was based on both quantitative and qualitative metrics, showing that with the right strategy, staff augmentation can maintain—and even enhance—productivity.

Understanding Developer Productivity: A New Approach

Traditional metrics for measuring developer productivity, such as lines of code or the number of commits, often fall short. They can be easily manipulated and may incentivize counterproductive behavior.

This study used a more advanced methodology developed at Stanford. By analyzing the functional aspects of source code across Git repositories, the algorithm assesses what the code actually does, commit by commit. This approach provides a language-agnostic and style-independent metric for evaluating both individual developers and entire teams.

The result is a more accurate and objective measure of productivity, free from the biases of traditional metrics.

Why Poland?

Poland is not just a cost-effective choice; it’s also a top performer.

The Stanford study revealed that software teams in Poland outperform the global average by a significant margin—around 56% higher, to be exact. This puts Poland ahead of even Brazil and Romania, which also performed exceptionally well.

The country’s tech talent is both highly skilled and highly motivated, making it a prime destination for US companies looking to scale efficiently.

Real-World Impact: A Data-Driven Strategy

This Stanford research underscores the importance of making data-driven decisions when considering staff augmentation.

The algorithm used in the study provides a new way to evaluate developer productivity that goes beyond traditional metrics. This allows companies to make informed decisions based on objective data rather than intuition or office politics.

For US scaleups, the message is clear: Poland offers a rare combination of cost savings and high performance, making it an ideal location for staff augmentation.

The case study shows that with the right approach, it’s possible to achieve substantial cost reductions while maintaining, or even enhancing, team productivity.

Unlock Growth with Poland’s Tech Talent

The findings from Stanford’s ongoing research make a compelling case for considering Poland as a key location for staff augmentation. With proven high performance, significant cost savings, and a highly skilled talent pool, Poland stands out as an exceptional choice for US scaleups looking to expand their engineering teams.

By leveraging Poland’s tech talent and advanced AI expertise, your company can achieve scalable growth without compromising on quality. As the data shows, it’s a decision that pays off—both in terms of performance and the bottom line.

Are you ready to explore how Poland can power your scaleup’s growth? Let’s discuss how staff augmentation in Poland can help you achieve your business goals.